Forex - Dollar and Yen surged broadly on Monday as investors close risky assets in higher-yielding currencies. - Forex Forum

The Dollar scaled a fresh 13-month peak versus the euro on Monday, while the Yen surged broadly as investors dumped risky assets amid anxiety over the lack of a coordinated global response to the credit crisis.

Traders drove the EurUsd below 1.3500, on a pessimist view after this weekend decision by leaders of Europe's four biggest economies against a coordinated bailout plan. In addition, European governments were forced to rescue large banks and protect ordinary depositors. European banks have been hit hard by the fallout from a crisis that began in the United States when the housing market collapsed and bad mortgage debts multiplied.

Both the Dollar and the Yen rallied sharply against higher-yielding currencies such as the Australian and New Zealand dollars as investors are closing riskier trades.

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